EUR/USD Down After Economic Sentiment Disappoints

The euro fell against the US dollar today after the economic sentiment indicators for Germany and the whole eurozone disappointed. The currency fared better against most other rivals, even gaining on the vulnerable Great Britain pound.

The ZEW Indicator of Economic Sentiment for Germany dropped from 17.5 to 10.0 in August, trailing the average forecast of 14.8. The eurozone sentiment indicator slid from 35.6 to 29.3, also falling below the analysts’ consensus estimate of 34.2. Traders were not as focused on economic data, though, as on the upcoming speech of European Central Bank President Mario Draghi at the Jackson Hole Symposium on Friday.

EUR/USD dropped from 1.1814 to 1.1770 as of 12:06 GMT today. EUR/GBP rose from 0.9158 to 0.9173, trading at the highest since October 7, when an unexplained flash crash led to high volatility for the currency pair.

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